SAP Pivots Away from Women's Quota, Embraces "Business Health Culture Index" Under US Pressure
hei Frankfurt
SAP nears cost-saving milestone through diversity initiatives.
After a change in legal regulations, SAP has phases out its aim for a 40% female workforce quotient and replaced it with the "Business Health Culture Index (BHCI)" as their primary focus in diversity and inclusion initiatives. This shift comes following pressure from the US government, as reported by the "Handelsblatt" based on an internal memo.
The company argues that such adjustments are necessary to align their initiatives with current law, abandoning the overall women's quota in the organization. Instead, the BHCI will be used as a benchmark for short-term bonuses in the board's remuneration. SAP still maintains their commitment to gender diversity and "integrative leadership," but emphasize the need to act as a "globally active company with a significant US presence."
Background: SAP's Departure from the 40% Quota
- Regulatory Compliance: SAP has reacted to new regulations, including those in Germany, where the company is headquartered, by modifying their diversity targets to comply with legal frameworks[1].
- Emphasis on Inclusion: The decision to drop gender-specific goals appears to signify a broader focus on workplace inclusivity rather than just meeting specific quotas[1][2].
The Evolution: From Quota to BHCI
- Holistic Measurement: The BHCI evaluates engagement, health, equal opportunities, and long-term employability, offering a comprehensive view of employee experience[2]. It draws insights from employee engagement surveys, targeting a work environment where everyone has an equal opportunity[2].
- Diversity and Inclusion Strategy: By prioritizing the BHCI, SAP aims to improve corporate governance and foster a healthier organizational culture that promotes long-term diversity and inclusion goals[2][3].
- Broader Business Benefits: The BHCI is anticipated to boost business outcomes by cultivating a positive work environment, leading to higher productivity and retention rates[2]. This strategic shift underscores the importance of workplace culture in attaining business success[2].
All things considered, SAP's move away from the 40% women's quota and towards the BHCI represents a strategic pivot towards a more inclusive and equitable work environment that aligns with evolving legal requirements and business priorities.
The strategic shift from the 40% women's quota to the Business Health Culture Index (BHCI) by SAP signifies a focus on workplace inclusivity and diversity-and-inclusion in the business. This change in approach will be used as a benchmark for short-term bonuses in the board's remuneration, aiming to improve corporate governance and foster a healthier organizational culture that promotes long-term diversity and inclusion goals.
